Photo courtesy of Li Yang

9 in 10 of APAC corporates have more liquidity now than pre-pandemic: survey

Corporate cash balances in APAC now top $4t, the most on record.

Over 90% of companies in the Asia Pacific now hold more money compared to before the pandemic, according to a survey by Citi of 260 of their corporate bank clients between July and August.

Many of these clients are now actively evaluating their options to deploy this excess liquidity, the bank said.

According to the MSCI AC World Index, the corporate cash balances of APAC now top US$4t, the most on record according to public data.

Amongst sectors, the growth in cash balances is particularly pronounced in the Industrials, Tech and Hardware sectors in the region, the index said.

Many regional corporations have raised cost-effective financing in the last 24 months to support and strengthen their balance sheets, according to Citi.
“As the recovery in global economic growth progresses, companies in the region are projected to generate close to US$4.5t in the next two years based on consensus estimates and industry data,” the bank noted in a press announcement.

In their responses to where this investment would flow, almost three-quarters of the 260 corporate clients surveyed named investment growth as their highest priority, with nearly half focused on de-leveraging. 

Investment related to ESG continues to show an upward trend at one third with one quarter returning cashback for shareholder redistribution, the bank noted in its survey.

“Most surveyed firms see ESG as an increasing focus area for their growth strategy. About half of surveyed firms even prioritize ESG investment over increasing shareholder distributions,” Citi said, adding that those who made a net-zero pledge have experienced more share price appreciation and market receptivity to their ESG strategy.

For their part, Citi’s head of Asia Pacific corporate banking Kaleem Rizvi said that they will work together with their clients to help build their investments whilst committing to a greener future.
“The scope of our sustainable effort is growing continuously and covers all client segments—from investors repositioning their portfolios toward greener industries, to corporates realigning their business models through acquisitions and divestitures.  Our institutional commitment to building greener future cuts across all these activities,” Rizvi said.

Join Asian Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Air Cargo Airlines saw a big opportunity in the midst of the COVID-19 pandemic.
HKTDC, ACCA list services HK can offer for businesses expanding in RCEP markets.
This is based on a survey conducted amongst Gen Z and Millennial entrepreneurs.
Amanda Murphy will lead South Asia and SEA whilst Frank Fang, the GBA.
Revenue growth was most expected by Biotechnology start-ups (30%).
Mahesh is rejoining Deutsche after leaving in 2017.
ABF spoke with industry experts from Mastercard, Enterpryze, Boku, and Xfers to learn more.
Research reveals how corporate purpose-related social media communications engage and align with public interest in Asia.
This was thanks to Alibaba’s $5b offerings and a $2.5 bond issuance by SK hynix.
The central bank is willing to lend 60% of the required funds at a 1.75% rate.
SG’s regulator remains iffy on cryptocurrencies—or, in MD Menon’s words, crypto tokens.
By end-2021, HSBC will have 64 working in its China onshore private banking.
Over 20 companies were hailed in this inaugural programme by the Asian Business Review.
Over 20 companies were hailed in this year’s virtual presentation.